Not simply home fund managers like Evolve and CI are getting into the Canadian AI ETF scene. Invesco Canada provides INAI, which tracks a namesake index for a 0.35% administration payment. The index is actively managed by the “Morningstar Fairness Analysis Subsequent Era Synthetic Intelligence Committee” which critiques and assigns publicity scores for holdings, making it much less passive than some would possibly anticipate.
The index focuses on 4 sub-themes (generative AI, knowledge and infrastructure, software program and companies) and contains notable international holdings like Taiwan Semiconductor Manufacturing. INAI is just not forex hedged however does provide a Canadian dollar-hedged model, INAI.F.
Lastly, International X ETFs (previously Horizons) really provides not one, however two AI thematic ETFs: AIGO and RBOT.
AIGO, which made its debut on Could 14, 2024, tracks the Indxx Synthetic Intelligence & Huge Information Index by wrapping a U.S. International X listed AI ETF in a fund of funds construction. It expenses a 0.49% administration payment and isn’t forex hedged. AIGO’s underlying U.S. ETF at the moment holds firms like Nvidia, Qualcomm, Broadcom, Netflix, Meta and Tencent, showcasing a broader semiconductor and communications focus.
RBOT, in contrast, has been round for much longer, having listed in 2017, and has amassed about $55 million in property. It expenses a 0.45% administration payment, which quantities to a 0.64% MER together with a 0.04% buying and selling expense ratio (TER). RBOT tracks the Indxx International Robotics & Synthetic Intelligence Thematic Index, which focuses extra on utilized robotics and automation quite than simply software program, together with healthcare firms like Intuitive Surgical and international producers like Yaskawa Electrical Corp.
Investing in any of those ETFs is simple. Merely enter the ETF’s ticker in your brokerage utility, resolve on the variety of shares you want to purchase and at what worth (utilizing a restrict order is beneficial), and be affected person as your transaction completes.
Whereas the fast enlargement of the AI sector and the flurry of latest AI ETFs in Canada are undeniably thrilling, I can’t assist however draw parallels with the dot-com bubble of the late Nineties, notably the rise and fall of Cisco Methods.
At its peak, Cisco briefly surpassed Microsoft because the world’s most precious firm, with a market cap nearing $500 billion, driving the wave of the web and networking growth.
